Nearly everything ever written about BYD in the Western press has focused on the Chinese automaker’s hybrid or electric drivetrains, or the firms and investors who have bought into their future promise. It’s an understandable state of affairs: after all, the firm started life as a cell phone battery maker, providing OEM cells for firms like Nokia. Meanwhile, BYD sold nearly a half-million cars in China last year, all gas powered, doubling both sales and profit over 2008 levels. And with plans for a pure EV now on hold, BYD is going back to basics, readying a range of new, allegedly more upscale, gas-powered cars for the Beijing Auto Show later this month. (Read More…)
Yesterday, Chinese site auto.sina.com had what our Ed Niedermeyer called “a belly-laugher of a wild-ass rumor: they say BYD has its eye on Daimler’s zombie luxury brand Maybach.” Funny as it may be, media all over the world jumped on the story. Now, the story is heading right to Snopes. After what must have been a round of heated phone calls between Stuttgart and Shenzhen, Daimler denounced the dumb-ass tale: (Read More…)
Chinese site auto.sina.com [via thetycho.com] has a belly-laugher of a wild-ass rumor: they say BYD has its eye on Daimler’s zombie luxury brand Maybach. The rumor is clearly based on the fact that BYD and Daimler recently closed a cooperation deal, in which they will jointly build vehicles in China for sale under a new brand name. But beyond that, there’s not much to go on. From what I can tell from the Google Translate version of the story, auto.sina.com seems to have an anonymous source in BYD that on March 23 divulged:
BYD is on the matter and approached Daimler, Daimler announced soon abandoned the brand, BYD Auto will soon be underway acquisition action.
A week ago, we ran a story about China’s BYD scaling back – way back – plans to mass produce their E6 pure plug-in. We reported that all they’ll make will be 100 E6 electric cars to be used as taxis in the city of Shenzhen, where BYD is based. Further development of the vehicles will depend on how that test fleet will be doing. At the time, it was only a rumor. Now, the rumor has been confirmed by the BYD man himself, Chairman Wang Chuanfu. (Read More…)
Wonder how a formerly little known company called BYD can turn into a major player in the auto business and turn a record profit? Here is one of the reasons: BYD “has scrapped its highly publicized plan to mass-produce pure electric cars on the mainland by the middle of this year,” writes Hong Kong’s South China Morning Post.
All they’ll make will be 100 E6 electric cars to be used as taxis in the city of Shenzhen, where BYD is based. Further development of the vehicles will depend on how that test fleet will be doing. Now that is one way to delay production. (Read More…)
Chinese battery maker and aspiring automaker BYD earned $215m in the fourth quarter of 2009, bringing its net profit for last year to $555.2m, reports Automotive News [sub]. BYD’s performance outstripped analyst estimates, which projected fourth quarter profits of $130.5m, and full-year profits of $473.2m. Though the Chinese auto market grew 46 percent to 1.6m vehicles, 47 percent of BYD’s 2009 sales came from the firm’s cell phone battery business, which is expected to give back recent gains as the global economic crisis takes its toll. Not so with BYD’s auto business: the firm has raised its 2010 car sales projections 14 percent, with sales of 800k foreseen. And as China’s car market takes off, BYD, which has one of the nation’s best-selling cars in its F3 compact, is expected to keep growing. Says one JP Morgan analyst:
BYD is a company that can’t be underestimated. If the Chinese vehicle market expands 10 percent this year BYD’s sales will grow at least 40 percent — 50 or even 60 percent is also a possibility.
Even since Landwind crash test, and the Brilliance crash test, the reputation of Chinese cars in Europe has been a little, shall we say, challenging. Watching the bonnet of a car crumble like Professor Gilbert’s theory on Toyota’s UA tofu does have its effect on prospective customers.
But none of this seems to worry BYD. Europe is their next target. Autocar reports that BYD, the maker of China’s biggest selling car, the F3, will be coming to Europe in 2011. Not with their bestselling F3, but with a pure electric E6. The car was introduced at the Geneva Motor Show. (Read More…)
Dow Jones [via Easybourse.com] has a hot release that is sure to be burning up the wires: Daimler and Chinese EV firm BYD have signed a deal to develop an electric vehicle “specific to the requirements of the Chinese market.” The new EV will be sold under a new, jointly-run brand and will be developed at a new Chinese technology center to be built as part of the joint venture. According to the release, “the companies’ understanding also includes further discussions on additional business opportunities of mutual interests,” all of which raises some interesting questions. Like why Volkswagen was caught napping: the Wolfsburg boys reportedly signed a MOU with BYD last March, but somehow Daimler has beaten them to the punch… on the very same day that VW announced that it wants to be the electric-mobility market leader by 2018, no less. Another open question: why develop a EV for the Chinese market, when that market’s tolerance for EV premiums appears to be fairly low? After all, with Daimler providing the car expertise, BYD might have a chance at the US and European markets where EV demand is actually proven. Also, how screwed is Tesla at this point? Though these questions remain very much unanswered, BYD is certainly making progress towards becoming a major car biz player, despite the many criticisms that have been leveled against it.
Typically, the only reports on China’s BYD involve booming Chinese sales, unproven future products, and Warren Buffett’s investment in the battery and auto manufacturing conglomerate. But these don’t tell the whole story of how BYD has emerged from relative obscurity to publicly announcing that it intends to challenge Toyota to become the world’s top automaker by 2018. Chinese outlet Caixin [via GreenCarReports] attempts to shed some light on BYD and what it takes to rise to the top of China’s massive manufacturing industry, in a piece titled “How Manufacturing’s Mockingbird Sings.” The piece details BYD’s reliance on reverse engineering, the practice of stripping down competitor automobiles and components and copying them, and its extreme (even by Chinese standards) dependence on cheap labor.
The prospect of US launches by Chinese and Indian auto brands like Tata and BYD have at least one of the established US-market players in a paranoid froth. Honda VP John Mendel revealed a few of the nightmare scenarios that keep him up at night to USA Today [UPDATE: more on Mendel’s fears at Automotive News [sub]]. One, inspired by BYD’s plans for a 2010 US launch without a distribution channel in place, is that newcomers could skip the dealer model altogether. Mendel worries that “warehouse stores or electronics stores” (sound familiar?) could be used to cut dealers out of the loop, “blowing up” business-as-usual for US distribution strategy.
So they say, if you want to be a successful car manufacturer, you must have steel in your DNA, gasoline in your blood, a history reaching back generations, and an annual output of at least 5m to stay profitable. And even then it’s not a slam dunk, as we are painfully aware.
Buffett-backed Chinese EV firm BYD is back at the Detroit Auto Show after making its main-floor debut last year. Like most automakers, BYD has toned things down a bit this year, featuring the same vehicle it brought last year, the all-electric e6 crossover. Last year, BYD said the 250-mile, 14-sec 0-60 e6 would be coming to the US at an estimated $40k pricetag. This year, BYD’s Fred Ni is telling ABC that the e6 could be more reasonably priced, implying that it would be sold at a price point comparable to similar gas-powered vehicles.
The Friends of the National Automotive History Collection have voted the Ford Flex as their “Collectible Car of the Future” of 2009. According to the NAHC’s press release, the award process “asked members to predict which of this year’s new vehicles will turn heads in the Woodward Cruise of 2034.” Of course, this criteria allowed only Detroit iron into the running, a stricture that we won’t hold you to here. We don’t care where in the world your nominated vehicle is built or sold, we just want to know what new car sold anywhere will be a coveted classic in 20 years. Our first nomination comes from TTAC commenter gslippy, who figures
Early Nanos will become collector’s items someday, just as the Honda N600 has.
That’s a solid nomination to start things off with, to which I would simply add the BYD F3DM. Not only is it the world’s first mass-produced plug-in hybrid, it has also sold miserably, further adding to its future collector value.
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